NAPCO Security Technologies, Inc. (NAPCO) manufactures and designs high-tech electronic security devices, cellular communication services for intrusion and fire alarm systems, as well as provides school safety solutions.
The company offers a diversified array of security products, encompassing access control systems, door-locking products, intrusion and fire alarm systems and video surveillance products. These products are used for commercial, residential, institutional, industrial and governme...
NAPCO Security Technologies, Inc. (NAPCO) manufactures and designs high-tech electronic security devices, cellular communication services for intrusion and fire alarm systems, as well as provides school safety solutions.
The company offers a diversified array of security products, encompassing access control systems, door-locking products, intrusion and fire alarm systems and video surveillance products. These products are used for commercial, residential, institutional, industrial and governmental applications, and are sold principally to independent distributors, dealers and installers of security equipment. The company is dedicated to developing innovative technology and producing the next generation of reliable security solutions that utilize remote communications and wireless networks.
The company distributes its products primarily through independent distributors and wholesalers of security alarm and security hardware equipment. The company sells security products and services, which are designed to secure the safety of the company’s customer and their commercial, residential, institutional, industrial or governmental properties.
Products and Services
NAPCO operates in the professional security community for reliably delivering both advanced technology and high-quality security solutions, building many of the industry’s widely recognized brands, such as NAPCO Security Systems, Alarm Lock, Continental Access, Marks USA, and other popular product lines. The company’s products and services primarily include standalone and networked digital door locks; standard and custom locksets, panic devices and door closers; intrusion alarm equipment; intrusion and fire alarm cellular communication devices and services; integrated cellular intrusion alarm systems; and door controllers and hosted services for access control.
Door Security Products
The company manufactures a variety of door locking devices, including microprocessor-based electronic door locks with push button, card reader and bio-metric operation, door alarms, mechanical door locks and simple dead bolt locks. These devices may control a single door or, in the case of some of the company’s microprocessor-based door locks, may be networked with the company’s access control systems and controlled remotely.
Intrusion and Fire Alarm Systems.
Alarm systems usually consist of various detectors, a control panel, a digital keypad and signaling equipment. When a break-in occurs, an intrusion detector senses the intrusion and activates a control panel via hard-wired or wireless transmission that sets off the signaling equipment, and in most cases, causes a bell or siren to sound. Communication equipment such as a cellular or digital communicator may be used to transmit the alarm signal to a central station or another person selected by a customer. Cellular communicators have become more popular and panels and communicators are trending towards integration so that many alarm panels will contain an integrated cellular communication device.
The company manufactures and markets the following products for these alarm systems:
Automatic Communicators. When a control panel is activated by a signal from an intrusion detector, it activates a communicator that can automatically dial one or more pre-designated telephone numbers utilizing wired (‘landline’) or cellular communications systems. If programmed to do so, a digital communicator dials the telephone number of a central monitoring station and communicates in computer language to a digital communicator receiver, which signals an alarm message.
Cellular communication devices. A cellular communication device connects to the communicator and is used in lieu of, or in addition to, a landline for communicating with a central monitoring station.
Control Panels. A control panel is the ‘brain’ of an alarm system. When activated by any one of the various types of intrusion detectors, it can activate an audible alarm and/or various types of communication devices.
Combination Control Panels/Digital Communicators and Digital Keypad Systems. A combination control panel, digital communicator and a digital keypad has continued to be the leading configuration in terms of dealer and consumer preference. Benefits of the combination format include the cost efficiency resulting from a single microcomputer function, as well as the reliability and ease of installation gained from the simplicity and sophistication of micro-computer technology.
Fire Alarm Control Panel. Multi-zone fire alarm control panels, which accommodate an optional digital communicator for reporting to a central station, are also manufactured by the company.
Area Detectors. The company's area detectors are both passive infrared heat detectors and combination microwave/passive infrared detectors that are linked to alarm control panels. Passive infrared heat detectors respond to the change in heat patterns caused by an intruder moving within a protected area. Combination units respond to both changes in heat patterns and changes in microwave patterns occurring at the same time.
Cellular Communication (Recurring Service Revenues)
The company provides cellular access for the cellular communication devices described above. These services are provided to the company’s service customers on a month-to-month basis.
Access Control Systems
Access control systems consist of one or more of the following: various types of identification readers (e.g. card readers, hand scanners), a control panel, a PC-based computer and electronically activated door-locking devices. When an identification card or other identifying information is entered into the reader, the information is transmitted to the control panel/PC, which then validates the data and determines whether or not to grant access by electronically deactivating the door locking device. An electronic log is kept which records various types of data regarding access activity.
Video Surveillance Systems
Video surveillance systems typically consist of one or more video cameras, a control panel and a video monitor or PC. More advanced systems can also include a recording device and some type of remote communication device such as an internet connection to a PC or browser-enabled cell phone. The system allows the user to monitor various locations at once while recorders save the video images for future use. Remote communication devices can allow the user to view and control the system from a remote location. The company designs, engineers, and markets the software and control panels discussed above. It also buys and resells various video cameras, PC-based computers and peripheral equipment for video surveillance systems.
Strategy
Due to paradigm changes in the security marketplace, the company’s focus has been on mandatory (non-elective) systems, such as fire systems with central station monitoring in commercial buildings, and iOT-driven connectivity services in high growth and margin categories. As copper land lines are phased out and more people switch to cellular phone service for their homes, the company’s cellular communication services become increasingly attractive in these installations, both new and existing. The company has built a strong competitive position by developing a wide range of software capabilities from embedded micro-coding to enterprise system software, database design, mobile applications development, user portal design, mechanical and electronic mechanisms and telecommunications, featuring the company’s significant radio and cellular communications expertise. The company is also focusing on security solutions for the healthcare industry, including anti-ligature lockets designed for life safety and liability reduction in hospitals, behavior health institutions and correctional facilities, and such products are highly profitable while complying with applicable regulatory and health standards. The company’s ability to design and produce these products and services are possible due to the company’s advanced set of in-house engineering technology capability from mechanical to electronic and electro-mechanical products, digital, microprocessor and analog circuit design, networking products, and wireless and cellular communications electronics.
Research and Development Costs
The company-sponsored research and development expenses were $10,763,000 for the year ended June 30, 2024.
Marketing
The company's staff of approximately 59 sales and marketing support employees sells and markets the company’s products primarily to independent distributors, wholesalers and dealers of security alarm and security hardware equipment. The company has approximately 1,800 active customers made up of distributors, installing dealers and wholesalers who purchase the company’s products directly from the company, as well as many more who purchase the company’s products from these distributors. The company's sales representatives periodically contact existing and potential customers to introduce new products and create demand for those, as well as other company products. These sales representatives, together with the company's technical personnel, provide training and other services to wholesalers and distributors so that they can better service the needs of their customers. In addition to direct sales efforts, the company advertises in technical trade publications and participates in trade shows in major United States cities.
History
NAPCO Security Technologies, Inc. was founded in 1969. The company was incorporated in 1971 in the state of Delaware.